News on the launch of a new free mobile application for smart phone users sent the stock of The Amergence Grp (PINK:AMNG) into the stratosphere yesterday. By the time the trading session came to a close, AMNG stock had risen 64% to an eight-month high of $0.021 per share on a staggering volume well above the 48 million mark, the highest since mid-October. Compared to the daily average trading volume, yesterday’s turnover ended up being 24 times higher.
Focused on medical marijuana, AMNG developed the new app for both Android and iPhone users so that the latter could get instant information about the price of medical cannabis offered in all company-owned stores, as well as the exact location of the latter.
Contrary to standard practice, promoters have turned a blind eye to AMNG for the second consecutive time now. When AMNG announced two days ago that it was about to gain control over three Arizona-based dispensaries, it failed to catch the attention of paid advertisers either. Nevertheless, the company’s stock appears to be doing just fine. [BANNER]
AMNG is a current information provider on the OTC Pink. However, the company’s diligence in the preparation of its reports can hardly make up for the dire financial situation AMNG is in as seen from the data for Q4 of 2010. The negative working capital in excess of $2.48 million, as well as the quarterly net loss of $157K pose a significant threat to the company with regard to its short- and long-term operations. 
As long as AMNG stock continues its way up the charts, investors will be satisfied. Yet, they should not forget about prospective dilution, which seems extremely likely now that AMNG has run out of cash and at the same time disposes of some 300 million shares of untouched authorized stock.
